US Economy Expands at 1.5% in Q2 Amid Ongoing Inflation Concerns

The US economy expanded at an annualized rate of 1.5% between April and June, according to Commerce Department data released on Thursday. This is lower than the expected growth of 1.8%, following a 2.1% expansion in the first quarter.

Consumer spending remained a key source of resilience, with household spending accelerating to a 3.2% annualized pace during the quarter after growing just 0.5% in the January-March period.

The personal consumption expenditures price index, the inflation measure most closely watched by the Federal Reserve, declined 0.1% on a monthly basis in June, but annual headline inflation remained at 3.7%, significantly above the central bank's 2% objective.